Where must arbitration proceedings be conducted for disputes involving B Bops?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| T. Integration/merger clause | Section 26 | Only the terms of the Development Agreement, the documents referred to in and the attachments to the Development Agreement are binding. Any other oral or written promises related to the subject matter of the Development Agreement may not be enforceable. This is not intended to disclaim any representations made in this disclosure document. |
|---|---|---|
| U. Dispute resolution by arbitration or mediation | Section 17 | Except for certain claims related to use of the Licensed Marks or proprietary information, all disputes must be arbitrated in Des Moines, Iowa. |
| V. Choice of forum2 | Section 17 | Arbitration must be commenced in the State of Iowa. |
| W. Choice of law2 | Section 25 | Iowa law applies (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, disputes, with some exceptions, must be arbitrated in Des Moines, Iowa. Furthermore, the FDD specifies that arbitration must be commenced in the State of Iowa. This applies to disputes arising from the Development Agreement.
This means that if a franchisee has a dispute with B Bops (excluding claims related to the use of licensed marks or proprietary information), the arbitration proceedings will take place in Des Moines, Iowa, regardless of where the franchisee's business is located. This could involve travel and associated expenses for the franchisee to attend the arbitration.
The FDD also states that Iowa law applies to these proceedings, subject to state law. This ensures that the arbitration will be conducted under the legal framework of Iowa, which may be different from the laws of the state where the franchisee operates. Franchisees should consult with a legal professional to understand the implications of these provisions.
It is typical in franchising for the franchisor to specify a location for arbitration that is favorable to them, often their home state. While this may create additional costs for the franchisee, it is a common practice and something to consider when evaluating the franchise opportunity.